NEARLY three-quarters of business leaders consider it important that a withdrawal agreement is ratified before the UK leaves the European Union, with two-thirds believing a no-deal outcome would be bad for their organisations, a poll shows.

And businesses were narrowly in favour of a second referendum on EU membership.

The survey, published yesterday by the Institute of Directors, shows only 13 per cent of respondents believe a no-deal scenario would be positive, with 46% warning such an outcome would be “very negative” for their businesses and 20% saying it would be “somewhat negative”.

Of the 800-plus IoD members surveyed, 46% said a second referendum would be in their interests and 44% did not believe it would, with the remainder declaring they did not know.

The IoD said the survey results showed the view of its members was that “a withdrawal deal has to be the priority”.

IoD director general Stephen Martin said: “The message from our members is clear – they urgently want to see the UK get a withdrawal deal across the line. Up and down the country, firms large and small are deeply concerned by the potential for a no-deal scenario, and business investment is already being choked off by the surrounding uncertainty.

“The need to avoid no deal must be at the forefront of MPs’ minds when they come to vote on the agreement. The deal we have might not satisfy everyone, but this is still the clearest route to securing a smooth exit.”

He added: “A second referendum is not an easy way out of the political bind we are in, with business opinion split on whether it would be a good idea now.”